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Points Are Wasted

  • The facts are in. . . They Aren’t Redeeming

    Colloquy recently released a study that showed one third ($16 Billion) of the roughly $48 billion of reward points issued annually, goes unredeemed by consumers.

    In addition, the average person is enrolled in 18 programs but only active in 8!

    That’s a lot of loyalty investment going to waste.

    If nothing else, this shows the vast majority of participants in loyalty programs are not engaged or connected to the brands offering awards for loyal behaviors.  While many companies look at unredeemed points as short-term corporate savings, unredeemed points do not equate to long-term customer relationships.  Redemption equals engagement, and engagement delivers customer satisfaction and profits.

    It is in the best interest of loyalty marketers to encourage redemption.

    According to Nancy Gordon, COO of Swift Exchange – a co-sponsor of the Colloquy study:

    “On the engagement side, redemption has been proven to drive profits.  But when companies focus on managing expensesand loyalty points are usually carried as a liability on balance sheets—there can be pressure to devalue, or even break, the value of the currency.”

    Smart marketers know the act of redemption is the first act of loyalty.  Redemption means that the member can experience the value proposition of the loyalty program and engage with the program.  Too bad only 1/3rd of program members do.

    Contact us now to find out how you can leverage your stock as a loyalty award and actually reward your members and increase redemption, engagement and profits.